Public Development Banks are responsible for delivering $2.3 trillion in global finance per year, 10% of the global total. These institutions must align their lending with the Paris Agreement if they are to live up to the commitments their government shareholders have made.
With the Finance in Common Summit starting today, the first-ever global summit of all public development banks, now is the perfect time to hold the most famous public banks – the Multilateral Development Banks like the World Bank, the European Investment Bank and the Asian Development Bank – to their climate promises.
While many public banks tout their climate credentials, E3G’s new, first-of-its-kind interactive tool, shows no Multilateral Development Banks are yet fully aligned with the Paris Agreement, despite their commitments to do so five years ago.
E3G’s new interactive online tool called the ‘E3G Public Bank Climate Tracker Matrix’, uses 15 detailed metrics to assess the degree of Paris Agreement alignment each bank has achieved. In a unique combination of internal bank documents and external information sources, the Matrix provides an easy to understand summary of how public bank activities and policies mainstream climate change. The assessment identifies priority actions each bank must take to reach Paris alignment and become transformational leaders of the transition to a climate-safe world. Explore the Matrix online here.
Sonia Dunlop, E3G Senior Policy Advisor on public banks and international financial institutions said:
“Our online tool translates the technical and the obscure into an easy-to-understand traffic light system. The tool allows governments and members of the public to see what public banks are doing, or should be doing, to mainstream climate into their work. The goal is simple: turn every light on the dashboard dark green.”
“Multilateral Development Banks promised to bring their lending in line with the Paris Agreement on climate change in 2015. Five years on, not one of them has succeeded. Our analysis highlights where each bank needs to get serious and accelerate progress to become a genuine leader of the climate transition.”